P2. Printware Products Inc. produces printers for wholesale distributors. It has just com- pleted packaging an order from Hawes Company for 450 printers. Before the order is shipped, the controller wants to compare the unit costs computed under the company?s new activity-based costing system with the unit costs computed under its traditional costing system. Printware?s traditional costing system assigned overhead costs at a rate of 240 percent of direct labor cost. Data for the Hawes order are as follows: direct materials, $17,552; purchased parts, $14,856; direct labor hours, 140; and average direct labor pay rate per hour, $17. Data for activity-based costing related to processing direct materials and purchased parts for the Hawes order follow. Activity Cost Driver Activity Cost Rate Activity Usage Engineering systems design Engineering hours $28 per engineering hour 18 engineering hours Setup Number of setups $36 per setup 12 setups Parts production Machine hours $37 per machine hour 82 machine hours Product assembly Assembly hours $42 per assembly hour 96 assembly hours Packaging Number of packages $5.60 per package 150 packages Building occupancy Machine hours $10 per machine hour 82 machine hours

P 20-02 Name : Section : Enter appropriate amount or item in the shaded cells. Use the drop-down lists when available. An asterisk (*) will appear next to an incorrect entry in the outlined cells. 1. Hawes Order: Direct materials Purchased parts Direct labor Overhead Total cost of order Product unit cost 2. Parts production Product assembly Packaging Setup Engineering systems design Building occupancy 3. Printware Products, Inc. Bill of Activities Hawes Order Activity Cost Driver Level Activity Cost Rate Activity Cost Unit level: per machine hour per assembly hour per package machine hours assembly hours packages per setup setups per engineering hour engineering hours per machine hour machine hours Batch level: Product level: Facility level: Total activity costs assigned to job Total units of job Activity costs per unit 4. Cost summary: Direct materials Purchased parts Activity costs Total cost of order Total cost of order Product unit cost 5. Product unit costtraditional costing Product unit costactivity-based costing Difference Units Product unit cost =